Yesterday’s general election in the UK has brought about significant changes, with a Labour government now in power. Their early commitments promise to reshape the recruitment and employment landscape within their first 100 days. Here’s what the recruitment sector can expect and how to prepare for these developments.


Regulatory Changes: Adapting to New Employment Laws

One of the most immediate impacts will be seen in employment regulations. The Labour government has committed to the following changes:

  • Removal of Current Service Requirements for Unfair Dismissal, Sick Pay, and Parental Leave:
    • Dismissal policies will need to be reviewed.
    • Changes to practices for dismissals of employees with less than two years’ service.
    • Much wider scope for unfair dismissal claims.
  • Introduction of the Right to Disconnect:
    • Contractual provisions to be negotiated.
    • Practices may need restructuring.
    • Policy will be needed.

Businesses will need to stay abreast of these updates to ensure compliance.


Sector-Specific Impacts: Focused Growth Areas

Policy changes targeting specific industries will shape recruitment needs. For instance:

  • Green Economy: Investments in renewable energy and sustainability projects can create new job opportunities, driving demand for talent specialising in these sectors.
  • Technology and Innovation: Support for digital transformation and tech innovation can spur job creation in IT and related fields, necessitating a focus on candidates with cutting-edge skills.


Immigration Policies: Influencing the Talent Landscape

Immigration policy will be another significant factor affecting recruitment. The new government's stance on immigration will influence the ease of bringing foreign talent into the UK job market. Businesses focusing on sectors reliant on international workers, such as healthcare and technology, should prepare for potential shifts in immigration policy, whether towards tighter controls or more open policies to attract skilled professionals.


Economic Policies: Measuring Business Confidence

The election outcome will impact business confidence and economic stability, influencing hiring trends. A government perceived as business-friendly may encourage corporate investment and expansion, leading to increased demand for talent. Changes in corporate taxes and government expenditure on infrastructure and public services will also directly affect job creation.


Education and Skills Development: Preparing for the Future

Addressing the significant skills gap will be a priority for the new government. Initiatives to improve vocational training and STEM education can enrich the talent pool, making it easier for businesses in the longer term to find qualified candidates for specialised roles. Enhanced funding for apprenticeships and professional training programs could also increase the availability of skilled labour, particularly in technical and trade sectors.


Diversity and Inclusion: Raising the Bar 

The election may introduce new equality legislation to promote workplace diversity and inclusion. Businesses will need to adapt to these evolving standards, ensuring they comply with new legal requirements and best practices for inclusive work environments.


Empower Your Workforce Event: Key Takeaways

Recently, we hosted an event titled "Empower Your Workforce" where Kate Palmer, Employment Services Director at Peninsula, provided her expert advice on navigating employment changes under a new government. If you missed this insightful talk, you can download our latest white paper for a comprehensive breakdown, including key takeaways. Alternatively, watch the recording of Kate's talk on our YouTube channel.


Adapting to Change

The UK general election of July 2024 signals a period of adjustment for the recruitment sector. As the new government's plans unfold, being proactive and adaptable will be essential for success in this dynamic environment.

As the recruitment landscape evolves post-election, having the right recruitment partner is crucial. At Maxwell Bond, we specialise in understanding the complexities of the recruitment market and can help you navigate these changes with confidence. Contact us today to learn how we can support your recruitment needs and secure the best talent for your business during this transformative period.